KRS 224A.140: Refunding bonds.

(1) The authority is hereby authorized to provide for the issuance of refunding revenue

bonds or notes for the purpose of refunding any revenue bonds or notes then

outstanding which shall have been issued under the provisions of this chapter,

including the payment of any redemption premium thereon and any interest accrued

or to accrue to the date of redemption of such revenue bonds or notes. The issuance

and sale of such refunding revenue bonds or notes, the maturities and other details

thereof, the rights of t he holders thereof, and the rights, duties, and obligations of

the authority in respect of the same, shall be governed by the provisions of this

chapter which relate to the issuance of revenue bonds or notes, insofar as such

provisions may be applicable.

(2) Refunding revenue bonds or notes may be sold or exchanged directly for

outstanding revenue bonds or notes of the authority, and if sold, the proceeds

thereof shall be applied, in addition to any other authorized purposes, to the

purchase, redemption, or payment of such outstanding revenue bonds or notes.

Pending the application of the proceeds of any such refunding revenue bonds, with

any other available funds, to the payment of the principal, accrued interest, and any

redemption premium on the revenue b onds or notes being refunded (and if so

provided or permitted in the authority resolution authorizing the issuance of such

refunding revenue bonds or notes, or in the trust indenture securing the same, to the

payment of any interest on such refunding revenue bonds or notes and any expenses

in connection with such refunding), such proceeds may be invested in direct

obligations of, or obligations the principal of and interest on which are

unconditionally guaranteed by the United States of America which shall mature or

which shall be subject to redemption by the holders thereof at the option of such

holders not later than the respective dates when the proceeds, together with the

interest accruing thereon, will be required for the purposes intended.